Correlation Between U Power and 00108WAF7
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By analyzing existing cross correlation between U Power Limited and AEP TEX INC, you can compare the effects of market volatilities on U Power and 00108WAF7 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in U Power with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and 00108WAF7.
Diversification Opportunities for U Power and 00108WAF7
Good diversification
The 3 months correlation between UCAR and 00108WAF7 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and U Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on U Power Limited are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of U Power i.e., U Power and 00108WAF7 go up and down completely randomly.
Pair Corralation between U Power and 00108WAF7
Given the investment horizon of 90 days U Power Limited is expected to generate 1.28 times more return on investment than 00108WAF7. However, U Power is 1.28 times more volatile than AEP TEX INC. It trades about 0.14 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.09 per unit of risk. If you would invest 675.00 in U Power Limited on September 13, 2024 and sell it today you would earn a total of 73.00 from holding U Power Limited or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
U Power Limited vs. AEP TEX INC
Performance |
| Timeline |
| U Power Limited |
| AEP TEX INC |
U Power and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and 00108WAF7
The main advantage of trading using opposite U Power and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, 00108WAF7 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| 00108WAF7 vs. Dream Finders Homes | 00108WAF7 vs. ReTo Eco Solutions | 00108WAF7 vs. Magna International | 00108WAF7 vs. Tyson Foods |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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